Tianhong Shares In The First Half Of The Year Were 9 Billion 600 Million, And Profits Increased 4.09% Over The First Half Of The Year.

Tianhong shopping center Limited by Share Ltd (hereinafter referred to as "Rainbow shares") issued the first half of 2019 annual report, during the reporting period, the company achieved operating income of 9 billion 676 million yuan, an increase of 1.61% over the same period, with a total profit of 646 million yuan, an increase of 4.09% over the same period. In the second quarter, the company's operating income increased 4.57% over the same period, and the total profit grew 5.28% over the same period.


During the reporting period, the main business income of Tianhong shares was 9 billion 352 million yuan, up about 111 million yuan from the same period last year. The retail sector achieved 8 billion 984 million yuan revenue, a decrease of about 21 million yuan over the same period last year, of which the comparable store declined by 80 million yuan.


According to the format, department stores, supermarkets, shopping centers, convenience stores and store sales were up -5.56 billion yuan, 254 million yuan, 206 million yuan, and 15 million yuan respectively compared with the same period last year. The remaining 59 million yuan revenue increment came from the operation of new formats stores; the real estate sector earned 369 million yuan, an increase of 132 million yuan over the same period last year; other businesses provided an increase of about 43 million yuan in revenue. In the first half of the year, the net profit of the company was increased by 18 million yuan over the same period last year, up 4.49% compared to the same period last year.


During the reporting period, the company continued to adjust its store format and increase its experience format area, which increased by 6.85% percentage points year-on-year compared with the total profit of the store last year, and its growth rate dropped by 12.21 percentage points compared with that of last year. Its contribution to the total profit of the department stores decreased by 3.36%, and that of the 35.58% (35.58%) supermarket profits increased by 20.20%. Two of them were still the main revenue generating end of the company; the shopping center format (accounting for 6.63% of the same store) and the convenience store format (accounting for 0.85%% of the same store) although the volume was smaller, the total profit increased by 56.64%/86.63% respectively, up to a year-on-year growth rate.


According to the category, clothing, food, daily necessities, cosmetics, leather shoes, household products, dining and entertainment, and electrical appliances respectively achieved operating income of 2 billion 996 million yuan, 2 billion 795 million yuan, 746 million yuan, 744 million yuan, 698 million yuan, 604 million yuan, 363 million yuan, 37 million yuan, respectively, which changed -3.31 billion yuan, 327 million yuan, 101 million yuan, -0.60 billion yuan, -0.75 billion yuan, -0.22 billion yuan, 58 million yuan and -0.18 billion yuan respectively compared with the same period last year. Among them, traditional clothing and food products contributed 30.97% and 28.89% of the business revenue respectively, accounting for 59.86% of the total, and the proportion of revenue was relatively high. Clothing accounted for 3.99 percentage points less than that of the same period last year. The proportion of cosmetic products / leather shoes / household appliances / electrical appliances also declined to some extent. On the contrary, the proportion of categories of items with strong categories such as food / daily necessities / food and entertainment was increased, and the 2.97%, 0.93%, 0.55% to 28.89%/7.71%/3.75% respectively increased during the reporting period.


China Galaxy Securities analyst Li Ang believes that Tianhong shares in the department stores, shopping centers, supermarkets and convenience stores in a variety of formats to lead the service, quality leading features, unique in the industry. Tianhong shares is guided by customer demand, through deep digitization of digital technology services online, through the upgrading of formats to create quality services, through the supply chain transformation to provide efficient services to enhance the efficiency of commodity category management. Compared with previous years, the performance of Tianhong share report has slightly declined compared with previous years, but the gross profit margin of retail business has been steadily improved. The effect of gradual implementation of the block and upgrading of stock stores is still to be tested.


In addition, the performance of Tianhong shares, such as supermarkets, convenience stores, etc., has been improved. The experiential shopping centres and theme blocks match consumer's pursuit of experiential and personalized consumption trends. Compared with department stores, the income resilience is stronger than that of the department stores.


The industry also believes that Tianhong stock experience positioning is in line with the mainstream consumer trends today, "one shop one policy" + "family oriented, close to life", digital, experiential, supply chain three major strategies continue to deepen.


In the first half of this year, Tianhong shares advanced the three development strategies of digitalization, experience and supply chain. We should further strengthen the digitalized customer touch and insight, optimize the digitalization of the supermarkets, promote the digitalization of the department stores, and continue to transform the business backstage with digitalization and Intellectualization Technology, continue to energize the suppliers, enhance experience upgrading, increase the service value and differentiation characteristics of the stores, increase passenger flow and income, vigorously promote category management, further deepen the supply chain, and promote the integration of the national supply chain.


During the reporting period, Tianhong shares continued to promote 7 pledge of quality assurance (supermarkets do not sell overnight meat dishes, supermarket fruit not delicious "three no" returns, offline shopping online capricious retreat, rainbow arrived home 2 hours served, free mail of department stores, dares to pay more expensive, pay online, customer service to 9 nights 10 at any time) has won wide range of influence and customers.


As of the end of the reporting period, the total membership of rainbow group is about 20 million 430 thousand, of which the number of digital members is about 18 million 820 thousand.


During the reporting period, Tianhong shares opened 2 shopping centers in Guangdong and Jiangxi respectively, including:


In May 18th, Foshan Tianhong shopping center was opened in Foshan, Guangdong. This is the first family shopping experience shopping center stationed in Foshan.


In June 28th, Ji'an City South Rainbow shopping mall was opened in Ji'an, Jiangxi. The store is located in the "City Garden Shopping Center", bringing new experience to local customers.


By the end of the reporting period, Tianhong shares have entered 25 cities in 8 provinces / cities, including Guangdong, Jiangxi, Hunan, Fujian, Jiangsu, Zhejiang, Beijing and Sichuan. There are 15 stores (including affiliate and management output 4) in the shopping center, 68 stores in the department stores (including 3), 82 stores in the supermarket, 9 in independent supermarkets, and 152 convenience stores, with an area of 3 million 200 thousand square meters.


As of June 30, 2019, the number of digitized members of Tianhong stock reached 18 million 820 thousand, of which the membership of rainbow APP was 9 million 130 thousand, WeChat fans 6 million 550 thousand, WeChat Mini program member 3 million 140 thousand. More than 80 million people have access to information or consumption through rainbow APP and rainbow applet. In the first half of 2019, online GMV14 billion yuan. At present, all stores in Tianhong have supported mobile phone self-service payment and laid self-service cash register. Supermarket self help sales account for 43% of supermarket sales. As of June 2019, Tianhong reached 81 stores on the home line, and sales increased by 46% over the same period last year.